Web 3 is a term that describes a new decentralized web that has arisen from blockchain technology. It emphasizes content ownership, data privacy, and peer-to-peer interactions (among other things). This new type of internet has been credited with increasing transparency, decentralizing power structures, and providing more opportunities for creators to monetize their work without going through third parties or gatekeepers.
But another aspect of Web3 needs to be talked about with greater vigor – the ethos of bringing consumers (users) to the forefront.
Consumers in the existing Web2 model are overlooked when it comes to sharing platform decision-making and revenue. This is a questionable paradigm, more so when you realize that consumers, and the valuable data they provide, are the very reason behind creators and platforms generating revenue.
Web3 platforms intend to radically transform these realities by shifting the dynamics between content creators and their fans while simultaneously removing centralized intermediaries and the excessive dependence on third-party services and service providers.
Take the community-focused Web3 platform Snapmuse.io. The platform endeavors to transform YouTube’s creator-fan model – where only one party (creator) benefits – with a more inclusive and rewarding partnership model where fans and creators forge communities tied by actual value, and everyone benefits.
Snapmuse.io achieves this by leveraging blockchain technology and non-fungible tokens (NFTs). Instead of the YouTube model where legions of fans help a creator generate ad revenue by consuming their content and forming global communities to support their favorite creators, Snapmuse.io’s NFT-driven model empowers consumers to generate passive revenue from their loyalty to their favorite creators.
From a Creator-Fan Dynamic Towards Value-Driven Partnerships
The NFT-driven approach from Snapmuse.io serves the interest of both creators and consumers (fans, in this context). Fans have been the constant force behind a creator’s success for ages. These fans are the very reason behind constructs like ad revenue, sponsorships, and promotions flourishing in the Web2 model.
Unfortunately, consumers don’t get anything in return – at least in terms of ownership and revenue. Instead, they are the subject of constant monetization. Snapmuse.io overcomes this reality by empowering creators to mint NFTs embedded with a share of their ad revenue. This means that fans who buy these NFTs will receive the corresponding share of the total ad revenue their favorite creators make.
To put the “ad revenue” numbers into perspective, YouTube paid its content creators a staggering $16 billion share of ad revenue in 2021 alone. The current monetization model doesn’t have anything for consumers: creators receive 45%, while YouTube keeps 55% of the ad revenue.
But with Snapmuse.io’s NFT-focused approach, consumers take center stage. By owning an NFT, fans can earn a share of their favorite YouTubers’ ad revenue. The creator-fan dynamic changes to partnership, wherein fans transition into stakeholders of the creator’s channel. If the creator’s channel grows, each NFT owner stands a chance to generate more revenue.
As a result of this change in dynamics, fans start becoming more active in the communities, sharing the content, driving viewership and subscriptions, promoting merchandise, and so on. This changes the creator-fan relationship to a long-term business relationship where each party benefits from the other.
From a creator’s perspective, it allows them to raise funds and exert more control over how they wish to monetize their content without blindly relying on centralized platforms. It also helps them generate more active involvement in their respective communities.
Moreover, Snapmuse.io’s novel approach grants consumers access to not one but two distinct revenue streams. Fans can invest once in an NFT from their favorite creator to receive a perpetual share of the creator’s ad revenue and also resell their NFTs on secondary marketplaces for returns on an initial investment. Together, this approach rebalances the creator-consumer relationship and ensures consumers are appropriately rewarded for their commitment.